Without the Olympics or an election cycle to fuel demand, a slowing economy and continued caution on the part of advertisers would hold down overall ad spending in 2007, Coen said.

Both Coen and Merrill Lynch analyst Lauren Rich Fine singled out anemic growth in automotive advertising, the largest ad category.

The overall tepid forecast for 2007 follows what is shaping up to be a disappointing year.

Despite the Olympics and a surge in political spending from the mid-term elections, growth in national advertising failed to outpace total growth in the U.S. economy as it has in years past, Coen said.

Forecasts for 2007 predict the hardest hit sectors will be television and print, which are expected to see stagnant or declining business.

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Web migration

The flow in ad dollars to new media is increasing rapidly, according to recent surveys